City of Beaumont Audit
Government Employee Benefits have been the center of our budget and economic talks - blaming the line workers for our State's financial problems. This is a lie. The City of Beaumont audit clearly shows that government officials are falsifying employee expenses.

In various departments in the General Ledger I found three (3) reoccurring posts:

Transaction # 208734 - Financial - 05/04/12 – 'Health & Fitness Reimbursement'

Transaction # 215049 – Financial - 07/27/12 - 'Health & Fitness Reimbursement'

Transaction # 222921 – Financial - 10/25/12 - 'Health & Fitness Reimbursement'

This is to reimburse the city employees for gym membership. Regular reimbursement transactions range from $100.00 – $250.00, fall under 'Purchasing', and have the employees' name in the memo, but with the above transactions there is no employee memo and the amounts are heavily skewed. The Street Maintenance Department has the following Health & Fitness Reimbursement transactions:

194764 – Purchasing – 11/04/11 - $178.98 - Employee's Name

208734 – Financial – 05/04/12 - $4,411.66

215049 - Financial – 07/27/12 - $337.00

222921 - Financial – 10/25/12 - $690.10

Street Maintenance used only $178.98 of their reimbursement, but the City has added over $5,000 more. The padding of the Health & Fitness account for the three dates listed totals $92,084.04. The City also padded the Education Reimbursement and other accounts. On 06/15/12 they took payroll deductions twice – on Transactions # 211306 and 211307.

 There is no reasoning or excuses – This is State and Federal Fraud and Embezzling.

I attempted to match the amounts Payroll Dates on Check Warrant to Payroll Deductions on the Bank Statements, but there is no match. Council ratified Pay Period 04/26/12 for $550,744.37 and Pay Period 05/10/12 for $481,586.89 – but the Bank shows payroll on 04/16/12 for $427,416.05; and on 05/03/12 for $532,878.83; and on 05/17/12 for $452.001.97. Council is either ratifying the Check Warrants for the wrong dates and amounts or there is another payroll account.

Another disturbing transaction is # 214406 – 07/26/12 – 'Worker's Comp'. This transaction is attached to 15 different departments and totals $ 458,654.00. The Bank Statements do not show a check issued or an electronic debit transaction.

It has been suggested that the “MG Trust' automatic debits are 'Mello Roos', but I've found that the 'MG Trust' ACH Debits are claimed on the Check Warrants as 'Mutual of Omaha' and the dates are incorrect. For example: the 05/15/12 Check Warrant lists four (4) transactions with dates 03/29/12 and 04/12/12, but the Bank Statement shows the transactions occurred on 04/25 and 04/26/12. There are no Mutual of Omaha transactions on the General Ledger.

Another transaction of concern: # 207206 – 06/30/11, but plugged in April, 2012. I have not tracked these transactions fully, but I have noticed three (3) for $9,778,347.78, $4,492,567.72, and $10,473,775.60.



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